- Oil rebounds from a three-month low as U.S. inflation cools in May
- July ’23 WTI gained $2.01 this morning to trade around $69/Bbl
- Equities trade higher while the U.S. Dollar weakened relative to its recent highs
- U.S. inflation slowed in May, strengthening the argument for the Fed to halt interest-rate hikes this week after a year-plus of hikes
- Annual growth of both CPI and core CPI, which excludes food and energy, slowed down, with inflation increasing at a two-year low rate of 4% in May
- China unexpectedly cut short-term interest rates on Tuesday to stimulate growth, with reports of a comprehensive stimulus package also under consideration
- Resilient Russian exports, concerns about an economic slowdown, and sluggish Chinese trade data continue to weigh on prices, countering Saudi’s recent production cut announcement
- Voluntary cuts lower OPEC output; Cartel warns of the uncertain economic outlook for 2H2023 (WSJ)
- Core OPEC's May oil output fell by 0.46 MMBbl/d to 28.06 MMBbl/d following voluntary cuts from OPEC+ members and unexpected outages
- While Saudi Arabia, UAE, and Kuwait cut oil output, increased production from Iraq, Nigeria, Angola, Iran, Libya, and Venezuela may neutralize potential price impacts
- The cartel maintains its global supply/demand forecasts for 2023, where it sees global oil demand increasing by 2.35 MMBbl/d, reaching 101.91 MMBbl, while non-OPEC oil supplies are expected to grow by 1.4 MMBbl/d to 72.61 MMBbl
- However, the producer group cautioned of potential economic uncertainty and decelerated growth in 2H2023